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Originally Posted by timbobo
Martingale does not work in theory. It does not improve your chances, it's neutral if your have unlimited deposit.
But it works in real life if chances for too many losses are pretty low. Personally I would try to use Martingale with profitable system to improve it. But I would need to be sure that system makes not more that 2-3 losses in row. In my tests that Ashi system did 9 losses in row. Even 5 losses in row will wipe out money for many days of trading.
mikejody,
Similar to you I'm looking for good system and your 3 requirements are mine as well. EAs would help with it. I'm sorry to say that but even 54% of profit orders with almost equal SL and TP is not good at all. As I said you can get similar results without any indicators just using a coin.
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This system has been very profitible every month of June through December last year. I have also just completed testing January and February of last year, and it made over 1400 pips.
The drawbacks I see to it are the low hit-rate (45%) and the large drawdown due to using Martingale.
I believe both of these could be fixed if we were able to get a different indicator that gave a better hit rate. All suggestions are welcome.
Yes, I also have had 9 losses in a row, but the 10th trade, of course, more than made up for all 9.
Guys, my thing is this: after years of trading both demo and live, of looking for systems that I could make work, I have come to the conclusion that I am simply not a good trader. It isn't that I can't stick to the rules of a system, I can, it is just that no system seems to be profitable for me in the long run.
So, I had to develop something that would allow me to NOT LOSE in the long run, hence the Martingale strategy. This would work fine if starting with very small lot sizes. Think of it this way, if starting with 100 units (.01 per pip) then you could have numerous losses, way more than the system produces, and still be a profitable trader. Not rich, for sure, just profitable.